A discrete-time dynamic programming approach for network airline revenue management Online publication date: Sat, 05-Jul-2014
by Jingying Li; Alberto Garcia-Diaz; Joseph Hubert Wilck
International Journal of Information and Decision Sciences (IJIDS), Vol. 6, No. 1, 2014
Abstract: A discrete-time dynamic programming (DP) model is proposed to determine the optimal bid price for each booking request under both single and multiple booking scenarios. The optimal revenue function and opportunity cost are analysed and an asymptotical property is presented. Several approximation schemes to solve the DP model are proposed, including the network decomposition method and the function approximation technique. The solution methodology is discussed and the performance of the different methods is evaluated by their computational efficiencies and revenue impacts. The results show that the proposed approximation algorithms represent a major step forward in terms of revenue growth and computational ability.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Information and Decision Sciences (IJIDS):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com